SME-focused lender Redwood Bank has been granted a banking license by the U.K. Prudential Regulation Authority and Financial Conduct Authority.
The bank, which is headquartered in Letchworth, Hertfordshire, is due to open later in 2017 and will focus on small and medium-sized enterprises in Hertfordshire, Bedfordshire and Buckinghamshire.
It is wholly owned by Redwood Financial Partners Ltd., controlled by Jonathan Rowland and David Rowland. Warrington Borough Council has acquired a 33% stake in Redwood Financial Partners, and its executive board approved a £30 million investment as part of the bank's capital funding.
Redwood Bank will extend loans to owner-occupied businesses, as well as experienced commercial and residential property investors, and will offer business deposit accounts. It will also open an office in Warrington before it launches.
Gary Wilkinson is the bank's CEO. Further senior management appointments will be made over the coming weeks.